Liberty Media to Spin Off Starz

Restructuring the Latest in Series by Malone's Company to Break Off Into Smaller, Separate Businesses

By

John Jannarone

Updated Aug. 8, 2012 4:06 p.m. ET

Liberty Media Corp. said it will split into two companies, dividing its Starz unit from its investment portfolio, setting the stage for the premium-TV channel business to merge with another company.

Starz comprises the Starz and Encore networks, which have long struggled to compete with more-profitable rivals including Time Warner Inc.'s HBO and CBS Corp.'s Showtime. Consolidation of the premium-cable channel sector has been seen as...